I know he wants something fast, but for $3800 and with an auto transmission to boot, it just ain't happening - unless he's willing to drive an 80s Camaro with fading paint, or a 1st gen Talon/Eclipse turbo with like 200,000+ miles on the clock. Other possibility come to mind, but he's going to have to settle for 1) high mileage or 2) ugly/abused interior/exterior.

My personal suggestion for any 16 year old forced to drive an auto would be a Volvo 240 or 940. Skip the troubled 700 class. They're safe like a tank, slow like one too, but will make him appreciate a faster car when he gets one - and will keep him alive until then, no matter how stupidly he drives. I knew a kid who drove his off an embankment, the car rolled 13 times, and STILL drove away from the scene. If he can somehow find one of the ultra-rare turbo 240s, it will haul ass, be upgradeable when he gets money later, and still be reasonably cheap.